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HomeMy WebLinkAbout4071 RESOLUTION NO. 4 0 7 1 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO NEGOTIATE AND EXECUTE A CONTRACT WITH KEN NELSON FOR THE PURCHASE OF PROPERTY AT 122 SOUTH DIVISION STREET IN AUBURN, WASHINGTON WHEREAS, the City of Auburn has the opportunity to collect its properties as a part of its Downtown Community Revitalization Plan; and WHEREAS, in order to effectively package its properties for their proper development, it is appropriate that the City purchase property from Ken Nelson for the purchase of property at 122 South Division Street, within the corporate limits of the City of Auburn. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, HEREBY RESOLVES as follows: Section 1. That the Mayor is authorized to negotiate and execute an agreement in substantial conformity with the Agreement attached hereto, marked as Exhibit "A" and incorporated herein by this reference. Section 2. That the Mayor is authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. Section 3. That this Resolution shall take effect and be in full force upon passage and signatures hereon. Dated and Signed this -y~' day of ~CQA.;-\- , 2oolL. CITY OF AUBUR .- ~ P ~ . LEWIS, MAYOR Resolution No. 4071 August 1, 2006 Page 1 ATTEST: ~~ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: Resolution No. 4071 August1,2006 Page 2 .w \/(1 ~tD3tc..{ REAL ESTATE PURCHASE AND SALE AGREEMENT CITY OF AUBURN This Agreement is rnade and entered into by and between the purchaser, CITY OF AUBURN (the "City"), and Ken Nelson (the "Seller"). WITNESSETH: Whereas, the City and the Seller are desirous of entering into an agreement whereby the City will purchase property owned by the Seller. NOW, THEREFORE, in consideration of the following terms, conditions and covenants and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, IT IS AGREED by the parties as follows: 1. SALE OF PROPERTY. The Seller shall sell, convey and transfer to the City, and the City shall purchase, acquire and take from the Seller, the real property generally located at 122 South Division Street, in the City of Auburn, King County, Washington, 98002, legally described as: Lot 5, Block 6, Town of Slaughter, according to the plat thereof recorded in Volume 2 of Plats, Page 56, in King County, Washington. Tax Parcel No. 7815700300. and all herediments, appurtenances, improvements, and buildings belonging or in any way appertaining to the "Property". 2. EARNEST MONEY DEPOSIT. The City agrees to pay herewith One Hundred US Dollars ($100.00) as earnest money, in the form of a City of Auburn promissory note to be deposited with the closing agent as part payment on the purchase price. payable to the Seller upon closing. 3. PURCHASE PRICE. The purchase price for the Property is FIVE HUNDRED THOUSAND US Dollars ($500,00.00). The parties acknowledge that the purchase price represents the fair market value of the Property. The agreed upon amount is payable by City Vtl8lII'8llIt at closing. ~ t:.~$l.. 4. CONDITION OF PROPERTY. Unless otherwise described in this paragraph the City offers to purchase the Property in an "as is" condition; with all physical defects, except those identified in paragraph 12, herein, including those that cannot be observed by casual inspection. Physical defects known to the Seller at the time of closing which are not observable by casual inspection shall be disclosed to the City. 5. REPRESENTATIONS OF SELLER. The Seller hereby represents to the City the following: (A) To the best of the Seller's knowledge there are no pending special assessments or condemnation actions with respect to 'he Property or any part thereof. 1 ~V '\" \O~ ofP and the Seller has no knowledge of any special assessment or condemnation actions being contemplated, and; (B) There is no pending litigation or suit threatened or asserted which could result in a lis pendens being lawfully filed against the Property, and; , (C) The Seller will cooperate with the City and execute. all documents necessary to remove or release liens, assessments, encumbrances, mortgages or deeds of trust in order to deliver to the City marketable title to the Property; (D) The Seller has good and marketable title and fee simple to the Property, which is not subject to any liens, encumbrances, restrictions, or easements of any kind except those which have been disclosed on the Commitment for Title Insurance received by the City; and (E) Neither the execution of this agreement, nor the performance of any of the terms or provisions hereof, violates, or shall violate, or conflicts with in any material aspect or constitutes a default under, any existing contract document understanding, agreement or instrument to which the Seller is a party, or by which the Seller may be bound. 6. CLOSING. The closing date shall be July 31, 2006, unless the Parties agree to another time. The place of closing shall be at Chicago Title Insurance Co., 25668 104th Avenue SE, Kent, Washington. The Seller shall be responsible and entitled to have all closing documents reviewed by its own counselor agent prior to closing. The risk of loss to the improvements, if any, on the Property prior to closing shall be Seller's and in the event of damage or destruction, the City shall be entitled to terminate this agreement. The City may postpone closing or terminate this agreement if it reasonably appears to the City that the Seller has misrepresented the condition of title, marketability of the PropertY or any other matter contained in Paragraph 4, above. 7. SELLER'S CLOSING DOCUMENTS. At the closing, the Seller shall produce and execute: (A) a Warranty Deed (The "Deed"), duly executed and acknowledged in a recordable form, conveying to the City marketable title to the Property free and clear of all liens, assessments, deeds of trust, mortgages, or encumbrances except those expressly agreed to by the City; (B) a detailed statement, prepared by the escrow officer and/or the closing attorney, setting forth the appropriate adjustments and prorations to be made at the closing; (C) a completed Seller's Disclosure Statement; and (D) all other documentation reasonably required by the City. 8. EXPENSES. A. Expenses of Seller. The Seller shall pay: (i) real estate taxes prorated to the date of closing; (Ii) all assessments, liens, mortgages, deeds of trust or other encumbrances (I.e. real estate excise tax); (Iii) the Seller's attorney fees; and (iv) all other expenses incurred by Seller which relate to the Property; (v) title insurance premiums. B. Expenses of City, The City shall pay: (i) all recording fees; (Ii) its attomey fees; (iii) real estate taxes due after the closing date, if any. 2 +",J 1-IO~d (;, 9. POSSESSION. The Seller shall deliver "legal" possession of the Property to the / City on the date of closing. ;0"""""'1- _.__d.......4flHds ...1-11<<1' -t1Iu~ ~ f"..e +r110lt..T") "" /"':'1 4'V' -rA-l. ;J/>>,~rl./I+ tAJtII1lt5~tL~ /ev,d,t.,..--t r~~~I\$lb,IJ""h~s II( J/.tl..~~-d6 10. TIME. Time is ofthdessence of this Agreement. I t:>/~/Ht ' 11. TITLE EXAMINATION. This Agreement is subject to and conditioned on the Seller providing to the City clear title to the real property, to the City's satisfaction, as shown on a Policy of Title Insurance covering the purchase of the Property in the amount of the cash purchase price, provided and paid for by the Seller. In the event that Seller is unable to cure any title encumbrances which are unacceptable to the City, the City may at its option: (1) terminate this agreement by written notice, whereupon no party shall have any further liability under this agreement; or (2) postpone the date of closing for up to sixty (60) days, during which time Seller shall use all reasonable efforts and expend reasonable sums as may be necessary to cure the objections of the City. If the objections to title are not cured on or before the closing date, as postponed, the City may terminate this agreement or waive the objections to title. 12. COMMISSION. The Seller warrants and represents to the City that if any real estate brokerage commission or fees are payable, the Seller hereby indemnifies the City from and against any and all claims for any real estate brokerage commission fees which may arise as a result of any acts of the Seller. The Seller will pay any real estate fees at closing, unless agreed otherwise. 13. HAZARDOUS WASTE. To the best of the Seller's knowledge the Property is not in violation of any federal, state or local law, ordinance, or regulation relating to the environmental conditions on, under, or about the Property, including but not limited to, soil and ground water conditions, and that during the time in which the Seller owned the Property, neither the Seller nor, to the best of the Seller's knowledge, any third party has used, generated, stored, or disposed of, on, under, or about the Property or transported to or from the Property any hazardous waste, toxic substances, or related materials (the "Hazardous Materials"). For the purposes of this paragraph, Hazardous Materials shall include, but is not limited to, substances defined as "Hazardous Substances," "Hazardous Materials," "Hazardous Waste," "Toxic Substances," in the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended, and RCW Title 7 and the regulations promulgated pursuant to such laws. The Seller will indemnify and hold harmless the City from all required remediation, damage, claim or loss (including attorney fees incurred in defending any claim) arising from the placement, storage, disposal or release on the Property of any Hazardous Materials during such time as the Seller was in possession or had any interest in the Property. This indemnification and hold harmless shall survive and not be merged into the deed delivered by the Seller to the City for the Property. If prior to the closing date the City discovers that the Property contains any Hazardous Waste, of which it has not been previously advised, the City may terminate this Agreement. 14. CONDEMNATION. The City and the Seller acknowledge that the Property being sold/purchased hereunder is not being purchased under the threat of condemnation pursuant to RCW Title 8. 3 15. NOTICES. Any notices required or permitted to be given shall be in writing and delivered either in person or by certified mail, return receipt requested, postage pre-paid, addressed as follows or such other address as may be designated by either party: City: Dave Baron Office of the Mayor City of Auburn 25 W. Main St. Auburn WA 98001 Copy to: Office of the City Clerk 25 W. Main St. Aubum WA 98001 Seller: Ken Nelson Nelson's Jewelry 101 East Main Street Aubum, W A 98002 Any notice given pursuant to this Agreement shall be deemed effective the day it is personally delivered or three (3) business days after the date it is deposited in the United States mails. 16. ENTIRE AGREEMENT/MODIFICATION. This written Agreement constitutes the entire and complete Agreement between the Parties hereto and supersedes any prior oral or written agreements between the Parties with respect to the Property. It is expressly agreed that there are no verbal understandings or agreements, which in any way change the terms, covenants, and conditions herein set forth. No modifications of this Agreement and waiver of any of its terms and conditions shall be effective unless in writing and duly executed by the Parties hereto. 17. BINDING EFFECT. All covenants, agreements, warranties and provisions of this Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective heirs, executors, administrators, personal representatives, successors and assigns. 18. CITY COUNCIL APPROVAL. The Seller acknowledges that this Agreement does not bind the City of Aubum until (1) the Mayor executes the Agreement and (2) the City Council approv~s thJ Ag~e men~ v A 1 ~ 'S-ll (,c...., 114- ~ i.Nh... ~d vi ~ d hit. j Ili./N4d<-/ PH", rlPVltC.f/"l. _~ 19. SELLERblSCLO RE STATEMENT. The Seller shall, within five (5) days of >(-V accepting this Agreement, deliver to the City a completed, signed and dated Real Property Transfer Disclosure Statement substantially in the form set forth in RCW 64.06.020. The City shall within three business days, or as otherwise agreed to, after receipt of the Real Property Transfer Disclosure Statement have the right to (1) approve and accept the Real Property Disclosure Statement; or (2) rescind this Agreement pursuant to the City's sole discretion. If the City elects to rescind the Agreement, the City will deliver written notice of rescission to the Seller within the above three (3) business day period, or as otherwise agreed. Upon delivery of a rescission statement, the City shall be entitled to immediate 4 'return of all deposits and other consideration paid to Seller. If City does not deliver a written rescission notice, the Real Property Transfer Disclosure Statement will be deemed approved. 20. DEFAULT AND ATTORNEY'S FEES. In the event that either party fails, without legal excuse, to perform any obligation under this Agreement, then the other party may, at its option, bring suit against the party failing to perform for the other party's actual damages, or pursue any other rights or remedies available at law or in equity. If either party institutes suit concerning this Agreement, the prevailing party is entitled to its court costs and reasonable attomey's fees. In the event of trial, the court shall fix the amount of the attorney's fees. Venue of any suit shall be in the county in which the property is located, and this Agreement is to be governed by the laws of the state where the property is located. 21. REPRESENTATION. EACH OF THE PARTIES SHALL SUBMIT THIS AGREEMENT TO THEIR ATTORNEYS AND TAX SPECIALISTS FOR THEIR REVIEW AND APPROVAL PRIOR TO SIGNING THIS AGREEMENT. NO REPRESENTATIONS OR WARRANTIES ARE MADE BY ONE PARTY TO THE OTHER PARTY AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAX CONSEQUENCES OF THIS AGREEMENT, THE TRANSACTION DESCRIBED HEREIN, OR ANY ATTACHMENTS TO THIS AGREEMENT. 22. AGREEMENT TO SELL AND TIME LIMIT FOR ACCEPTANCE. The Buyer offers to buy the pro~rty on the above terms and conditions, The Seller has until midnight of .::r",\... ~ , 20~ to accept this offer (if not filled in, the day following the Buyer's signature' date below.) Acceptance is not effective until a signed copy hereof along with any earnest money is actually received by the office of Closing Agent. If this offer is not so accepted, It shall lapse. ~ ~ -I -<':) fO-O~ ..Ji< !I-.ldnl..dt,t.\A;. --<.. r/~;;"'I /~ 23. SIGNATURES: '1r\~.j ~r< ..fG., a~.rrJ~cI A~ ~"''''fM.~.er. CITY: .(V" I SELLER :J>" ,. I- J I PETER B. LEWIS, MAYOR ( {) CITY OF AUBURN -:-1<f't> t\')e\ \1\" 25 W. MAIN ST, (print name) AUBURN WA 98001 ... one) 1(\ \ E a. ,-L.n1o.. ,..... <.. t ax) (address) 2~s-5S 3s--F5'(Q.f) (phone #) '?-C;'$- ~ 3:S-~7<f 'Z (fax #) tL (Zture) '1-lo-t> Gt (date) signature) , I:~A~ (date) 5 ., Addendum to Real Estate Purehase and Sale A2I'eement The parties hereto, the City of Auburn (Buyer) and Ken Nelson (Seller) herewith amend their Real Estate Purchase and Sale Agreement of even date as follows: (1) After closing, the Buyer may continue to use to property for employee parking until written notice from the City. (2) 1031 EXCHANGE. The parties acknowledge and agree the Seller desires to consummate this transaction as a 1031 Tax Deferred Exchange and has appointed (OPTION: TAX DEFERRED EXCHANGE SERVICES, INC.,Pine Street Professional Center, 3730 South Pine Street, Tacoma, Washington 98409), to act as qualified intennediary on Seller's behalf. Buyer agrees to consummate this transaction as a 1031 Tax Deferred Exchange provided Buyer realizes no additional expenses or liability as a result of the consummation of this transaction as an Exchange than Buyer would incur if this transaction closed as provided herein without said Exchange. Buyer understands in so doing that they will not in any manner be impacted by the exchange financially or from a liability standpoint, but is doing so to allow Seller to meet the requirements of the Code regarding tax deferred exchanged. ~ .... ~ CIT AUBURN, ;;;- Date~Q5 (print name) Agreed to by: :z d--- KEN NELSON Date 7-1()-O~ CHICAGO TIlLE INSURANCE COMPANY 2S668104TI1AVENUESE, KENT, WA 98031 A.L T.A. COMMITMENT SCHEDULE A Order No.: 1216814 Title Unit: U-ll Phone: (253)520-7691 Fax: (2S3)856-m5 Officer: LORI FORBES, PENNI WARREN, JANE PERRY Costom.erNumber: NELSON/CITY OF AUBURN Buyer(s): CITY OF AUBURN Commitment Effective Date: JULY 18, 2006 1. Policy or Policies to be issued: ALTA Owner's Policy 1992 STANDARD 30% DISCOUNT/RESIDENTIAL RESALE RATE AND 10% DISCOUNT/COMBINATION Pr~~ Insured: CITY OF AUBURN at 8:00 AM. PREMIUM APPliCABLE BEIWEBN $480,001.00 - $500,000,00 Amount: $500,000.00 Premium: $ 939.00 Tax: 82.61 Policy or Policies to be issued: ALTA Loan Policy Amount: $0.00 Premium: Tax: Proposed Insured: Policy or Policies to be issued: ALTA Loan Policy Proposed Insured: Amount: $0.00 Premium: Tax: 2 . The estate or interest in the land which is covered by this Commitment is: FEE SIMPLE 3 . Title to the estate or interest in the land is at the effective date hereof vested in: KENNETH NELSON, WHO ALSO APPEARS OF RECORD AS KENNETH A. NELSON, AS HIS . SEPARATE ESTATE 4. The land referred to in this Commitment is described as follows: SEE ATTACHED LEGAL DESCRIPTION EXHIBIT COMMAlI05/ICLC/II.1.05 CHICAGO TITLE INSURANCE COMPANY AL.T.A. COMMITMENT SCHEDULE A (Continued) Order No.: 1216814 Your No.: _R/C!Zft or _VIllI LEGAL DESCRIPTION EXHIBIT (paragraph 4 of Schedule A continuation) LOT 5, BLOCK 6, TOWN OF SLAUGHTER, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 2 OF PLATS, PAGE 56, IN KING COUNTY, WASHINGTON. CLTAQ.fAIj/RDA/am CHICAGO TITLE INSURANCE COMPANY AL. T.A. COMMITMENT SCHEDULE B Order No.: 1216814 Your No,: JJBLSOR/CXTlC 01' A1IBtrItJI Schedule B of the policy or policies to be issued will contain exceptions to the following matters UDless the same are disposed of to the satisfaction of the Company. GENERAL EXCEPTIONS A. Rights or claims of parties in possession not shown by the public records. B. &croachments, overlaps, boundary line disputes, or other matters which would be disclosed by an accurate survey and inspection of the premises. C. Easements, or claims of easements, not shown by the public records. D. Any lien, or right to a lien, for contn'butiollS to employee beuefitfunds, or for state workers' compensation, or for services. labor. or material heretofore or hereafter furnished, all as imposed by law, and not shown by the public records. E. Taxes or special assessments which are not shown as existing liCIIS by the public records. F. Any service. installation, connection, maintenance. tap, capacity or construction charges for sewer, water. electricity, other utilities, or garbage collection and disposal. G. Reservations or exceptions in patents or in Acts authorizing the issUllJlce thereof; Indian tribal codes or regulations, Indian treaty or aboriginal rights. including easements or equitable servitudes. H. Water rights, claims. or title to water. I. Defects, liens. encumbrances. adverse claims or other matters, if any, created, first appearing in the public records, or attaching subsequent to the effective date hereof but prior to the date the proposed insured acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. SPECIAL EXCEPTIONS FOLWW WLTACOMB/IlDA/D999 CHICAGO TITLE INSURANCE COMPANY AL.T.A. COMMITMENT SCHEDULE B (Continued) Order No.: 001216814 Your No.: SPECIAL EXCEPTIONS A 1. PAYMENT OF THE REAL ESTATE EXCISE TAX, IF REQUIRED. THE PROPERTY DESCRIBED HEREIN IS SITUATED WITHIN THE BOUNDARIES OF LOCAL TAXING AUTHORITY OF CITY OF AUBURN. PRESENT RATE IS 1.78%. ANY CONVEYANCE DOCUMENT MUST BE ACCCMPANIED BY THE OFFICIAL WASHINGTON STATE EXCISE TAX AFFIDAVIT. THE APPLICABLE EXCISE TAX MUST BE PAID AND THE AFFIDAVIT APPROVED AT THE TIME OF THE RECORDING OF THE CONVEYANCE DOCUMENTS. . 2. GENERAL AND SPECIAL TAXES AND CHARGES, PAYABLE FEBRUARY 15, DELINQUENT IF FIRST HALF UNPAID ON MAY 1, SECOND HALF DELINQUENT IF UNPAID ON NOVEMBER 1 OF THE TAX YEAR (AMOUNTS DO NOT INCLUDE INTEREST AND PENALTIES) : YEAR: TAX ACCOUNT NUMBER: LEVY CODE: ASSESSED VALUE-LAND: ASSESSED VALUE-IMPROVEMENTS: 2006 781570-0300-02 0140 $ 69,000.00 $ 71,000.00 GENERAL & SPECIAL TAXES: BILLED: $ 1,838.91 PAID: $ 919.46 UNPAID: $ 919.45 c 3. DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF: GRANTOR: KENNETH A. NELSON, TITLE IS VESTED AS FOLLOWS: KENNETH NELSON, ALSO KNOWN AS KENNETH A. NELSON, AS HIS SEPARATE ESTATE PACIFIC NORTHWEST TITLE COMPANY OF WASHINGTON, INC. STERLING SAVINGS BANK $ 90,000.00 AUGUST 29, 2001 AUGUST 30, 2001 20010830002062 NOT DISCLOSED TRUSTEE: BENEFICIARY: AMOUNT : DATED: RECORDED: RECORDING NUMBER: LOAN NUMBER: a.TACMlll/RDA1.... CHICAGO TITLE INSURANCE COMPANY A.L.T.A. COMMITMENT SCHEDULE B (Continued) Order No.: 1216814 Your NO.:IIIIL8OlI/OX'n' 0,. """.... SPECIAL EXCBPTIONS THE AMOUNT NOW SECURED BY SAID DEED OF TRUST AND THE TERMS UPON WHICH THE SAME CAN BE DISCHARGED OR ASSUMED SHOULD BE ASCERTAINED FROM THE HOLDER OF THE INDEBTEDNESS SECURED. D MODIFICATION OF DEED OF TRUST AND THE TERMS AND CONDITIONS THEREOF: DATED: RECORDED: RECORDING NUMBER: MARCH 22, 2006 MARCH 23, 2006 20060323000470 . 4. ASSIGNMENT OF RENTS AND/OR LEASES AND THE TERMS AND CONDITIONS THEREOF: ASSIGNOR: KENNETH A. NELSON, TITLE IS VESTED AS FOLLOWS: KENNETH NELSON, ALSO KNOWN AS KENNETH A. NELSON, AS HIS SEPARATE ESTATE STERLING SAVINGS BANK AUGUST 29, 2001 AUGUST 30, 2001 20010830002063 ASSIGNEE: DATED: RECORDED: RECORDING NUMBER: , 5. IN THE EVENT THAT THE PROPERTY DESCRIBED HEREIN IS OCCUPIED BY A MARRIED PERSON AND SPOUSE AS A Ha4ESTEAD, THE CONVEYANCE OR ENCUMBRANCE OF THE PROPERTY MUST BE EXECUTED AND ACKNOWLEDGED BY BOTH HUSBAND AND WIFE, PURSUANT TO RCW 6.13 WHICH NOW PROVIDES FOR AN AU'I'CJoIATIC HCMESTEAD ON SUCH PROPERTY. II 6. TBB LBGAL DBSCRI:PTION IN THIS COMICITJIBRT IS BASED ON INI'ORMATION PROVIDED WITH '1'HB APPLICATION All]) '1'D PUBLIC RBCORDS AS DBPINBD IN THB POLICY TO ISSUB. '1'HB PARTIBS TO '1'HB 170RTHCOMDTG TRANSACTION MOST JWTIPY TBB TITLB INStJRANCB COMPANY PRIOR TO CLOSING IF THB DESCRIPTION DOBS NOT CONFORM TO THBIR IaPECTATrONS. . 7. THE POLICY REQUESTED IN THE APPLICATION FOR INSURANCE IS AN ALTA Ha4EOWNER'S POLICY OF TITLE INSURANCE, ONE-TQ-FOUR FAMILY RESIDENCE. SAID POLICY IS NOT AVAILABLE FOR THIS PROPERTY/TRANSACTION, AND THE ALTA OWNER'S POLICY AS IDENTIFIED IN SCHEDULE A HEREOF WILL BE ISSUED CLTACMB2/RDA/0999 CHICAGO TITLE INSURANCE COMPANY A.L.T.A. COMMITMENT SCHEDULE B (Continued) Order No.: 1216814 Your No.: -..oIl/ern- ow __ SPECIAL EXCEPTIONS INSTEAD. r NOTE 1: COUNTY RECORDS INDICATE THAT THE ADDRESS OF THE IMPROVEMENT LOCATED ON SAID LAND IS: 122 SOUTH DIVISION STREET AUBURN, WASHINGTON 98001 or NOTE 2: EFFECTIVE JANUARY 1, 1997, DOCUMENT FORMAT .AND CONTENT REQUIREMENTS HAVE BEEN IMPOSED BY WASHINGTON LAW. FAILURE TO COMPLY WITH THE FOLLOWING REQUIREMENTS MAY RESULT IN REJECTION OF THE DOCUMENT BY THE COUNTY RECORDER OR IMPOSITION OF A $50.00 SURCHARGE. FOR DETAILS OF THESE STATEWIDE REQUIREMENTS PLEASE VISIT THE KING COUNTY RECORDER'S OFFICE WEBSITE AT WNW.NBTROKC.GOV/RBCBLBC/RBCORDS .AND SELECT 0RI.D1B FORKS AIID 1l0C0MDrr STAllDAIl1lS. THE FOLLOWING MAY BE USED AS AN ABBREVIATED LEGAL DESCRIPTION ON THE DOCUMENTS TO BE RECORDED TO COMPLY WITH THE REQUIREMENTS OF RCW 65.04. SAID ABBREVIATED LEGAL DESCRIPTION IS NOT A SUBSTITUTE FOR A COMPLBTE LEGAL DESCRIPTION WHICH MUST ALSO APPEAR IN THE BODY OF THE DOCUMENT: LOT 5, BLOCK 6, VOLUME 2 OF PLATS, PAGE 56. BHIl 01' SCHBDULB B L TO EXPEDITE THE COMPLETION OF YOUR CLOSING, PLEASE FORWARD YOUR CLOSING ORDER AND RECORDING DOCUMENTS TO: CHICAGO TITLE INSURANCE COMPANY - CENl'RAL RECORDING 701 FIFTH AVENUE, 33RD FLOOR SEATTLE, 'WASHINGTON 98104 THANK YOU, UNIT n - SOUTHEND TITLE UNIT Q.TAQOI2/RDA109!l9 @ CHICAGO TITLL ~NSURANCE COMPANY 701 FlFTII AVENUE, #3400, SEA TIlE, W A 98104 PHONE: (206)628-5600 FAX: (206)628-4725 IMPORTANT: This is Dot a Survey. It is furnished as a couvemeDce to locate the laud iDdicated hereon with reference to streets aud other laud. No liability is assumed by reason of reliance hereon. ... MAP EXCLUSIONS (Cont'd.) 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state Insolvency, or similar creditors' rights laws, that Is based on: (i) the transaction creating the estate or interest Insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to Impart notice to a purchaser for value or a judgment or lien creditor. ALTA LOAN POLICY FORM (10-17-92) The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. ( a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (Ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (ill) a separe- tion In ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulatlons, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encum- brance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the pUblic records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumorances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the Insured claimant prior to the date the Insured claimant became an Insured under this policy; (c) resuiting in no loss or damage to the Insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy Insures the priority of the lien of the Insured mortgage over any statutory lien for services, labor or material); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceablllty of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the Inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state In which the land Is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured mortgage and Is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim or priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which Is con- tracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the Indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws. that is based on: (i) the transaction creating the interest of the Insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (i1) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (Iii) the transaction creating the interest of the Insured mortgagee being deemed a preferential transfer except where the prehirentlal transfer results from the failure: (a) to timely record the Instrument of transter; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.